Trump tariffs on Canada; Wisconsin impact, congressmen weigh in

MILWAUKEE - President Donald Trump backed down on a threat to double tariffs on Canadian steel and aluminum to 50%. Still, a 25% tariff is planned to take effect on Wednesday, March 12.

What are tariffs?

Big picture view:

A tariff is a tax charged when a good enters one country from another. When President George Washington signed his second bill, it was all about tariffs, and it said the goals were to raise money, pay down debt and protect American manufacturing from foreign competition.

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Now, the question is what impact Trump's tariffs would have on Wisconsin.

Flags of U.S., Canada and Mexico

‘Will Tariffs Make Wisconsin Rich?’

Local perspective:

According to the Wisconsin Economic Development Corporation, the top Canadian imports into Wisconsin are industrial machinery, then plastic products, fuel/oil, paper products and articles of wood. 

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But Wisconsin ships more to Canada than it takes. In 2024, the state brought in $6.2 billion of Canadian imports and sent Canada $7.9 billion worth of goods – including industrial machinery, electrical machinery, vehicles, parts and, of course, drinks.

Researchers at the University of Wisconsin-Madison's Center for Research on the Wisconsin Economy just published a paper called "Will Tariffs Make Wisconsin Rich?" They said Wisconsin exports and imports fell during tariffs in President Trump's first term. They also found costs fell on American consumers and American importers.

Wisconsin lawmakers

What they're saying:

The changing plans for tariffs against Canada have left Wisconsin with lots of questions. Debate centers on what will come of the tariffs.

U.S. Rep. Bryan Steil (R-Wisconsin): "Leveraging these tariffs is a tool to, at the end of the day, make trade free, fair, but also reciprocal, so that our allies and other countries are buying products made, produced and grown in the state of Wisconsin and across the United States of America."

U.S. Rep. Scott Fitzgerald (R-Wisconsin): "It’s very unpredictable right now, I think, based on some of the numbers we’re seeing. It’s certainly going to have an effect, and hopefully in a positive way when it comes to U.S. trade."

U.S. Rep. Mark Pocan (D-Wisconsin): "One of the things we know is that our biggest trading partners for agriculture in Wisconsin is Canada, so when you put the tariffs and we start a war with Canada, it’s going to have ripple effects. People are going to feel it, and either get lower prices for their products or pay more for things that come through Canada. That’s the opposite of trying to help the American economy, like we were promised in November."